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NOTICE TO PROGRAM PARTICIPANTS NEW FARM LAW PROVISION NOW EFFECTIVE FOR ALL COMMERCIAL EXPORT PROGRAMS

Notice Number:

GSM FY 96-2
EEP FY 96-4
DEIP FY 96-4
COAP/SOAP FY 96-3
SCGP FY 96-1

WASHINGTON, July 18, 1996 -- This Notice replaces Notice Number GSM FY 96-1, EEP FY 96-3, DEIP FY 96-3, and COAP/SOAP FY 96-2, dated June 4, 1996, to include in its scope the Supplier Credit Guarantee Program (SCGP).

Christopher E. Goldthwait, general sales manager of the U.S. Department of Agriculture's Foreign Agricultural Service today reminded participants in all Commodity Credit Corporation (CCC) commercial export programs that the definition of "United States agricultural commodity" was changed by the Federal Agriculture Improvement and Reform Act of 1996, (P.L. 104-127) (the "1996 Act"), which became effective on April 4, 1996. This revised definition will apply to the Export Credit Guarantee Program (GSM-102), Intermediate Export Credit Guarantee Program (GSM-103), Export Enhancement Program (EEP), the Dairy Export Incentive Program (DEIP) and the recently published SCGP. This Notice is effective as of today's date, except for the SCGP, in which case this Notice is effective on August 30, 1996.

The revised definition of "United States agricultural commodity" appears in section 243(c) of the 1996 Act, which amended section 102(7) of the Agricultural Trade Act of 1978. This definition now reads as follows: "(A) an agricultural commodity or product entirely produced in the United States; or (B) a product of an agricultural commodity -- (i) 90 percent or more of the agricultural components of which by weight, excluding packaging and added water, is entirely produced in the United States; and (ii) that the Secretary determines to be a high value agricultural product. For purposes of this paragraph, fish entirely produced in the United States include fish harvested by a documented fishing vessel as defined in title 46, United States code, in waters that are not waters (including the territorial sea) of a foreign country."

This new definition will, under certain circumstances, necessitate a change in exporter certifications under CCC programs. Specifically, when shipping a product that has been identified as a "high value agricultural product" in a GSM-102, GSM-103, or SCGP program announcement issued under 7 C.F.R. 1493.20(w) or 1493.410(u), or in an EEP or DEIP invitation issued under 7 C.F.R. 1494.201(w), the exporter will be required to certify as follows: "The product [to be exported] [exported] is a product of an agricultural commodity as defined in the Notice to Program Participants dated July 18, 1996."

The exporter must include this certification in the following submissions to CCC:

1. GSM-102 and GSM-103:

--In the application for a payment guarantee, after the statement that "All Section 1493.50 Certifications Are Being Made In This Application" (see 7 C.F.R. 1493.40(a)(18)).

--In the evidence of export, after the statement that "All Section 1493.90 Certifications Are Being Made In This Evidence Of Export" (see 7 C.F.R. 1493.80(a)(10)).

2. SCGP:

--In the application for a payment guarantee, after the statement that "All Section 1493.440 Certifications Are Being Made In This Application" (see 7 C.F.R. 1493.430(a)(17)).

--In the evidence of export, after the statement that "All Section 1493.480 Certifications Are Being Made In This Evidence Of Export" (see 7 C.F.R. 1493.470(a)(10)).

3. EEP and DEIP:

--In the offer, after the statement that "All Item 20 Certifications Are Being Made In This Offer" (See 7 C.F.R. 1494.501 (c)(20)).

Such a certification will replace the certifications found at 7 C.F.R. 1493.50(a) (for GSM-102/103 applications for payment guarantees), 7 C.F.R. 1493.90(a) (for GSM-102/103 evidence of export reports), 7 C.F.R. 1493.430(a) (for SCGP applications for payment guarantees), 7 C.F.R. 1493.480(a) (for SCGP evidence of export reports) and 7 C.F.R. 1494.501 (c)(20)(xi) (for EEP and DEIP offers).

Exporters must include the above certification only when they are shipping a product designated in the governing GSM-102, GSM-103, or SCGP program announcement or EEP or DEIP invitation as a "high value agricultural product." Otherwise, certification requirements remain unchanged.

Although the 1996 Act would not require that the revised definition be used in the Cottonseed Oil Assistance Program (COAP) or the Sunflowerseed Oil Assistance Program (SOAP), the USDA would apply the definition to these programs if they were reactivated. In that case, a separate notice would be issued to inform exporters of specific changes in certification requirements.

By issuing this notice, USDA is advising all program participants of the above change. USDA will also amend existing regulations to incorporate this change.

For further information on these matters, contact L.T. McElvain, Director, CCC Operations Division at telephone (202) 720-6211.

General information about CCC and USDA programs, resources, and services is available on the Internet. The address (url) for the FAS Home Page is http://www.fas.usda.gov.

PR 0305-96

 

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